inflation

Question 1

anticipated inflation

Answer 1

increases in prices which economic actors are able to predict with accuracy

Question 2

CPI

Answer 2

measures inflation against it’s target of 2%
weighted basket of goods

Question 3

cost-push inflation

Answer 3

inflation caused by increases in costs of production in the economy

Question 4

deflation

Answer 4

a fall in the price level

Question 5

demand-pull inflation

Answer 5

inflation which is caused by excess demand in the economy

Question 6

disinflation

Answer 6

a fall in the rate of inflation

Question 7

hyper-inflation

Answer 7

large increases in the price level
annual inflation rates over 50%

Question 8

indexation

Answer 8

adjusting the value of economic variables

Question 9

inflation

Answer 9

a general rise in prices

Question 10

retail price index (RPI)

Answer 10

a measure of the price level calculated over 60 years used to index welfare benefits

Question 11

unanticipated inflation

Answer 11

increase in prices that economic actors like consumers and firms fail to predict

Question 12

price level

Answer 12

the average price of goods and services in the economy